Established in 1985, in technical and financial collaboration with Showa Corporation of Japan, Munjal Showa is among the pioneering global leaders in the manufacture of shock absorbers.

Munjal Showa products serve as original equipment to a wide range of Maruti Suzuki upper end cars and export models, Honda City car, complete range of Hero Honda Motorcycles, Kawasaki Bajaj Motorcycles, and Hero range of mini-motorcycles and mopeds and Honda Motorcycles and Scooters India (Pvt) Limited. In over a decade the Company's state-of-the-art Shock Absorbers, Front Fork, Struts and Window Balancers/Gas Springs have become symbols of reliability and quality for popular two and four wheeled vehicles.

Annual Performance:

For the year ended March 2017, the company has reported 3% drop in the total income from operations at Rs 1459.66 crore. OPM dropped 100 bps at 6.5%. The raw material cost as % of sales net of stock adjustments rose 30 bps to 73.4%. The other expenses (as % of sales net of stock adjustments) decreased 70 bps to 12% while employee cost rose 130 bps to 8%. There was a 16% drop in operating profit to Rs 94.6 crore.

With good help from rise in other income to Rs 16.09 crore (up by 204%), PBIDT decreased by 6% to Rs 110.7 crore. The company's interest cost fell by 58% to Rs 5 lakh.Depreciation charges fell 1% to Rs 29.06 crore. After this PBT fell 7% at Rs 81.61 crore. After 6% drop in tax provision at Rs 25.05 crore, (30 bps rise- in tax rate), the company's net profit fell 8% at Rs 56.56 crore.

Quarterly Performance

For the fourth quarter ended March 2017, the company has reported 5% decrease in the total income from operations at Rs 357.21 crore. The raw material cost as % of sales net of stock adjustments rose 5 bps to 73.76%. The other expenses (as % of sales net of stock adjustments) rose 20 bps to 12.75%. Employee cost rose by 170 bps to 8.3%. Resultantly, Operating margins decreased by almost 200 bps to 5.1% (against 7.1%) leading to a 32% drop in operating profit to Rs 18.13 crore.

With 232% rise in other income to Rs 3.49 crore (vis a vis Rs 1.05 crore), PBIDT decreased by 22% to Rs 21.62 crore. The company's interest cost rose 200% to Rs 3 lakh and depreciation charges fell by 3% to Rs 7.25 crore. Thus, profit before tax decreased by 29% to Rs 14.34 crore. After 25% drop in tax provision at Rs 4.67 crore, (160 bps rise in tax rate), the company's net profit fell by 31% at Rs 9.67 crore.

Shares of Munjal Showa are currently trading around Rs 188 at BSE.